Acc Final
brownc8
ACC2027-1FinalProjectSubmissionPresentationtoInvestors.pptxRusty's Barkyard Playland
Located in beautiful Jackson, Wyoming
Our vision is to spread love and kindness to our beloved furry friends through pampering and play.
Our mission is to provide your dogs with a luxurious and rejuvenating experience while treating them as part of our family.
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Why should you invest in my company?
When you invest in my company will see the love our dogs feel. You will see a return on your investment and know you have made the right decision.
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Association of International Certified Professional Accountants
I am a member of the AICPA and believe in approaching all aspects of my business with fairness, honesty and free of conflicts of interest.
I vow to practice ethical decision-making when it comes to everyday decisions.
You can trust that my financial data is accurate and free from errors or embellishments.
Boarding
Grooming
Day Care
To support our mission we treat our dogs to luxury boarding getaways, rejuvenating spa experiences and playful doggy day care. I use my managerial accounting methods to keep costs down in order to pass the savings along to my customers.
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Job Order Costing I decided to use job order costing as the base for my financial strategy.
Job Order Costing
Job order costing provides a separate record of the cost of each particular product needed to run my business.
Utilizing this system allows for me to create a more accurate account of the finances needed to complete each specific job within my company.
Process Costing System
Process cost system accumulates the costs for each department within the facility it was manufactured in.
This system is used when a company is manufacturing for multiple clients.
Grooming Selling Prices
$30 per groom
It costs $9.97 to groom a dog.
By charging $30 we will make $20.03 per dog.
At this selling price we groom four dogs per day.
Monthly grooms total: $2403.60
Profits: $35.68
$25 per groom
It costs $9.97 to groom a dog.
By charging $25 we will make $15.03 per dog.
At this selling price we groom five dogs per day.
Monthly grooms total: $2254.50
Profits: -$113.42
$35 per groom
It costs $9.97 to groom a dog.
By charging $35 we will make $25.03 per dog.
At this selling price we groom three dogs per day.
Monthly grooms total: $2252.70
Profits: -$115.22
As you can see from this comparison charging $30 per groom nets a higher profit. To break even we need to sell 119 dog grooms. Our monthly fix costs are $2,367.92.
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Day Care Selling Prices
$20 per dog
It costs $4.74 per dog per day for day care.
By charging $20 per dog we will make a profit of $15.26 per dog.
At this selling price we provide day care for 15 dogs per day.
Monthly day care totals: $6867.00.
Profits: $6007.61
$18 per dog
It costs $4.74 per dog per day for day care.
By charging $18 per dog we will make a profit of $13.26 per dog.
At this selling price we provide day care for 22 dogs per day.
Monthly day care totals: $8751.60
Profits: $7892.21
$25 per dog
It costs $4.74 per dog per day for day care.
By charging $25 per dog we will make a profit of $20.26 per dog.
At this selling price we provide day care for 10 dogs per day.
Monthly day care totals: $6078.00.
Profits: $5218.61
As you can see from this comparison charging $18 per dog nets a higher profit. To break even we need to provide day care to 65 dogs. Our monthly fix costs are $859.39.
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$28 per dog
It costs $7.36 per dog per day for day care.
By charging $28 per dog we will make a profit of $20.64 per dog.
At this selling price we provide day care for 10 dogs per day.
Monthly dog boarding totals: $6192.00.
Profits: $4813.01
$25 per dog
It costs $7.36 per dog per day for day care.
By charging $25 per dog we will make a profit of $17.64 per dog.
At this selling price we provide day care for 12 dogs per day.
Monthly dog boarding totals: $6350.40
Profits: $4971.41
$30 per dog
It costs $7.36 per dog per day for day care.
By charging $30 per dog we will make a profit of $22.64 per dog.
At this selling price we provide day care for 7 dogs per day.
Monthly dog boarding totals: $4754.40.
Profits: $3375.41
Dog Boarding Selling Prices
As you can see from this comparison charging $25 per dog boarding nets a higher profit. To break even we need to provide board 79 dogs. Our monthly fix costs are $1378.99.
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Target Profits Grooming, Boarding and Day Care
| Target Profit Point | Break Even Units | |
| Grooming | $1000 | 169 |
| $1500 | 194 | |
| Boarding | $583 | 112 |
| $909 | 130 | |
| Day Care | $417 | 97 |
| $667 | 116 |
To achieve our target profits we need to increase our sales and in order to maximize our break even points. This chart shows the number of sales we need per area of business to reach our target profits.
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Contribution Margins
Grooming
Day Care
Boarding
The total variable costs show a break down of the items needed to provide each service to our furry friends. After factoring this into my cost per service I was able to determine my contribution margins per service performed.
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This statement of cost of goods manufactured shows us that it cost $11,000 in January to open up Rusty’s Barkyard Playland.
The income statement shows a net income of $9,753.00 for the month of January after all expenses have been paid.
Direct Labor and Materials Variance
Although all categories affect the labor and materials variance, direct materials price variance has the greatest impact on the bottom line. If it was to decrease in the future then profits may decrease as well.
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ItemCosts
Shampoo$1.04
Clipper(s)1.37
Bowls0.72
Towels5.83
Scissors1.01
Total Variable Costs9.97$
Sales Price$30.00
Variable Cost per unit$9.97
Contribution Margin$20.03
ItemCosts
Day care attendant2.88
Toys 0.27
Bowls0.19
Towels1.40
Total Variable Costs4.74$
Sales Price$18.00
Variable Cost per unit$9.97
Contribution Margin$13.26
ItemCosts
Kennel attendant5.63
Bowls0.86
Towels0.87
Total Variable Costs7.36$
Sales Price$25.00
Variable Cost per unit$7.36
Contribution Margin$17.64
Beginning work in process inventory-$
Direct Materials:
Materials - Beginning5,000.00$
Add: Purchases for month of January
Materials Available for use5,000.00$
Deduct: Ending materials (2,000.00)$
Materials used in production2,000.00$
Direct Labor6,240.00$
Factory Overhead 2,800.00$
Total Manufacturing OH9,040.00$
Deduct: Ending work in process inv.-$
Cost of Goods Manufactured11,000.00$
Rusty's Barkyard Playland
Statement of Cost of Goods Manufactured
For the Month Ended January
Revenue:
Grooming2,700.00$
Day Care11,880.00$
Boarding9,000.00$ 23,580.00$
Total Revenue$23,580.00
Cost of Goods Sold*11,000.00$
Gross Profit12,580.00$
Expenses:
G&A Salaries1,200.00$
Advertising 100.00$
Cleaning Products120.00$
Depreciation83.00$
Rent650.00$
Loan240.00$
Utilities and Insurance600.00$
Total Expenses2,993.00$
Net Income/Loss9,587.00$
Rusty's Barkyard Playland
Income Statement
For the Month Ended January 31, 2017
Groomer Direct Labor Time Variance360.00$ unfavorable
Groomer Direct Labor Rate Variance(90.00)$ favorable
unfavorable
Direct Materials Efficiency 400.00$
Direct Materials Price Varaince1,200.00$ favorable
